Putting this knowledge to use is relatively simple. Watch the relevant markets closely; a five-minute chart works well. As trends concurrently develop, look for prices to move in the directions indicated in “Pick your days wisely.” Once the listed moves develop and appropriate trends are established, look for an opportunity to get on board.
“Inverse relationship: Dollar and crude oil” (below) shows the U.S. Dollar Index on March 14. At around 8 a.m. (identified by an arrow on the chart), the dollar hit its high for the day and then proceeded to decline in value. At the same time, the April crude oil contract made its low for the day and then increased in value. This inverse relationship between the dollar and crude oil is a powerful one. Early in the trend, astute traders recognized the move developing and placed positions to exploit it — most likely as long trades in crude oil.